My research consists in using lab experiments and survey data to gain empirical insights on agents' behaviors and expectation formation processes, and developing models of the economy that incorporate heterogeneity and bounded rationality. These experiments and models can be used for the analysis of macroeconomic questions, in particular monetary and fiscal policy design, central bank communication, and prudential policy and financial regulation.
Here you can find the list of my publications and working papers, organized by topics:
Behavioral macroeconomics: lab and survey experiments
Publications in Peer-Reviewed Journals:
21. HOMMES Cars, HUBER Steffi, MINIMA Daria and SALLE Isabelle, 2024, Learning in a Complex World Insights from an OLG lab experiment, Journal of Economic Behavior and Organization, 220:813-837.
20. SALLE Isabelle, 2023, What to Target? Insights from a lab experiment, Journal of Economic Behavior and Organization, 212:514-533.
19. ARIFOVIC Jasmina, HOMMES Cars, KOPANYI-PEUKER Anita & SALLE, Isabelle, 2023, Ten isn’t large! Group size and coordination in a large-scale experiment, American Economic Journal: Microeconomics, 15(1):580-617. WP version here.
18. EVANS George, HOMMES Cars, McGOUGH Bruce & SALLE, Isabelle, 2022, Are long-horizon expectations (de-)stabilizing? Theory and experiments, Journal Monetary Economics, 132:44-63.
17. SALLE Isabelle, Comment on `No Firm is an Island? How Industry Conditions Shape Firms’ Aggregate Expectations, by Philippe Andrade, Olivier Coibion, Erwan Gautier, and Yuriy Gorodnichenko, 2022, Journal of Monetary Economics, 125:57-61.
16. HODBOD Alexander, HOMMES, Cars, HUBER, Stefanie & SALLE, Isabelle, 2021, The COVID-19 consumption game-changer: Evidence from a large-scale multi-country survey, European Economic Review, 140 (Nov.)
ECB working paper version here; replication package here.
Media coverage: Bloomberg; Marketwatch; VOX-EU column; CEPR-VoX interview; El confidential; Santander Insights
15. ARIFOVIC Jasmina, HOMMES Cars & SALLE Isabelle, 2019, Learning to Believe in Simple Equilibria in a Complex OLG Economy - evidence from the lab, Journal of Economic Theory, 183:106-182.
Accepted version available here.
14. HOMMES Cars, MASSARO Domenico & SALLE Isabelle, 2019, Monetary and Fiscal Policy Design at the Zero Lower Bound ? Evidence from the lab, Economic Inquiry, 57(2):1120–1140.
Accepted version available here.
Working Papers:
- SALLE Isabelle, GORONIDCHENKO, Yuriy & COIBION, Olivier, 2023, Lifetime Memories of Inflation: Evidence from Surveys and the Lab, NBER 31996, December.
- ARIFOVIC Jasmina, SALLE Isabelle & TRUONG Hung, 2023, History-Dependent Monetary Regimes: A Lab Experiment and a Henk Model, Tinbergen Insitute working paper 23-028/VI, submitted.
- HOMMES Cars, PINTER Julien & SALLE Isabelle, 2023, What people believe about monetary finance and what we can(’t) do about it -- Evidence from a large-scale multi-country survey experiment, Bank of Canada Staff Working Paper 23-36, submitted. New version here.
- LUSTENHOUWER Joep & SALLE Isabelle, Forecast revisions in the presence of news: a lab investigation, No 714, Working Papers from the University of Heidelberg, revised version 2024 here.
Behavioral macroeconomics: Learning and heterogeneous-agent models:
Publications in Peer-Reviewed Journals:
13. ARIFOVIC Jasmina, GRIMAUD Alex, SALLE Isabelle & VERMANDEL Gauthier, Social Learning about Monetary Policy at the Zero-Lower Bound, forthcoming in the Journal of Money, Credit and Banking.
12. SALLE Isabelle, YILDIZOGLU Murat, ZUMPE Martin & SENEGAS, Marc-Alexandre, 2017, Coordination through social learning in a general equilibrium model, Journal of Economic Behavior & Organization, 141:64-82.
WP version here, Code of the model
11. SALLE Isabelle & SEPPECHER Pascal, 2016, Social Learning about Consumption, Macroeconomic Dynamics, 20 (16):1795-1825.
WP version here, Code of the model in Netlogo and Java
10. YILDIZOGLU Murat, SENEGAS Marc-Alexandre, SALLE Isabelle, ZUMPE Martin, 2014, Learning the optimal buffer-stock consumption rule of Carroll, Macroeconomic Dynamics,18 (4):727-752.
WP version here, Code of the NetLogo extension of the ANN, and code of the model
Working Papers:
- GRIMAUD Alex, SALLE Isabelle, VERMANDEL Gauthier, Social learning expectations: microfoundations and a Dynare toolbox, Revised version Dec. 2023 here. Download our Dynare toolbox here!
Earlier publications on the Jamel Agent-Based Model
I developed the Jamel model from 2012 to 2018 in collaboration with Dr. Pascal Seppecher (U. Paris 13). Find here more information about the model.
9. SALLE Isabelle & SEPPECHER, Pascal, 2018, Stabilizing an Unstable Complex Economy ? On the limitations of simple rules, Journal of Economic Dynamics and Control, 91:289-317.
WP version here, Code of the model
8. SEPPECHER, Pascal, SALLE, Isabelle and LAVOIE, Marc, 2018, What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model, Industrial and Corporate Change, 27(6):1045-1064
WP version here, Code of the model
7. SALLE Isabelle, SEPPECHER, Pascal and LANG, Dany, 2019, Is the market really a good teacher? Market selection, collective adaptation and financial instability, Journal of Evolutionary Economics, 29(1):299-33.
WP version here, Code of the model
Must-Read on Brad DeLong’s blog and the Washington Center for Equitable Growth.
6. SEPPECHER Pascal & SALLE Isabelle, 2015, Deleveraging crises and deep recessions – a behavioural approach, Applied Economics, 47(34-35):3771-3790.
WP version here, Code of the model
Other earlier publications on Agent-Based Models:
5. SALLE Isabelle, SENEGAS, Marc-Alexandre, YILDIZOGLU, Murat, 2019, How transparent should a Central Bank be ? an ABM assessment, Journal of Evolutionary Economics, 29(1):391–427.
WP version here, Code of the model , Code NOLH sampling
4. SALLE Isabelle, 2015, Modeling expectations in agent-based models – An application to central bank’s communication and monetary policy, Economic Modelling, 46:130-141.
WP version here, Code of the model , Code NOLH sampling
3. SALLE Isabelle & YILDIZOGLU, Murat, 2014, Efficient Sampling and Metamodeling in Computational Economic Models, Computational Economics, 44(4):507-536.
WP version here, Code of the NetLogo extension of the ANN, Code NOLH sampling, codes of the paper
2. SALLE Isabelle, YILDIZOGLU, Murat, SENEGAS, Marc-Alexandre, 2013, Inflation Targeting in a Learning Economy: an ABM Perspective”, Economic Modelling, 34:114-128.
WP version here, Code of the model , Code NOLH sampling
Miscellaneous
Publication in French (peer-reviewed):
1. SALLE, Isabelle, 2013, Ciblage de l’inflation, Transparence et Anticipations –une revue de la littérature récente, Revue d’Economie Politique, 123(5):697-736, working paper (in French) here.
Contributions to newspapers:
Coronavirus: pourquoi les Pays-Bas n’ont pas de leçons à nous donner, a critical piece in FigaroVox (in French) about Dutch economics.